Today you will learn the easiest trick to increase your conversion rates by 7 times. This tutorial will walk you through the reason behind the common myth “that online real estate leads don’t work” and what you can do about it.
In part 1 we learned about conversion rates and which ones are most important for Real Estate Agents to track.
Let’s start with a common myth, “Online leads don’t convert.”
The top real estate agents in Canada are using online lead generation tools like Lead Magnet every hour of every day. These are smart agents. They won’t implement a system unless it benefits their business and is time-efficient.
So what do these top real estate agents know?
They know that online leads do convert. This is how they are dominating the market. They know that making an introduction with a lead quickly increases their chance of a conversion by 7 times (Harvard Business Review). They also know that good lead generation systems make the difference between good lead flow and bad lead flow.
Making an introduction quickly.
Have you ever had a brilliant idea late at night and then completely forget what it was in the morning? That frustrating experience is similar to what happens to people when they are contacting an agent through an online lead form.
They get an idea, “I should ask an agent for help on this.” After submitting the form they wait 15 minutes for a response. Our research shows that after 15 minutes online leads actually forget that they even sent the request. The reason is because their lives are busy and their brains do a good job of prioritizing information consumed online.
By the time a Realtor follows up, the lead may actually respond with, “Why are you contacting me?” Again the reason is because they have forgotten that they initiated the request and may take a minute or two to remember.
The second reason for this response is that most people submitting forms online have a big fear they are going to be spammed. This fear increases the longer it takes for them to get a response.
This phenomenon with online leads explains two things. Why Realtors with quick follow-up systems are doing such a good job of converting leads online. It also explains why the majority of Realtors don’t have great success and often feel rejected by the very people who requested their help.
Responding quickly creates trust, puts Leads at ease, and starts the conversation between you and your potential client.
Darryl Reuter, a Realtor based out of Kelowna British Columbia, came to us with a specific goal. He wanted to test online lead generation and said, “If I can get 1 appointment this month from online leads I would consider that a success.”
Darryl is both a great Real Estate Agent and a good person. He does a lot of work for not-for-profit’s as well as real estate. He treats his clients well. We knew he would be a good candidate for online lead conversion.
Before the end of the first month Darryl booked 3 listing appointments and won 2 of them. These were Sellers outside his sphere of influence and he never would have met them without the Lead Magnet system.
1. Online lead conversion does work with the right system. We will get more into that in part 3 (coming soon).
2. Respond to all lead inquiries within 15 mins. This will increase chances of having a meaningful conversation with the lead by 7 times. The response can be as simple as an email saying, “I’ve received your inquiry and will get back to you with more information shortly.”
Passionate about helping leaders grow their business, Jonathan Whiting is co-founder of StreetText. In addition to StreetText Hub, Jonathan has written for TechVibes and REM Magazine.